Nevada’s Credit System Offers Blueprint for More States to Develop ZEV Standards that Reduce Carbon Emissions

Nevada’s Credit System Offers Blueprint for More States to Develop ZEV Standards that Reduce Carbon Emissions

Aaron Kressig, Transportation Electrification Manager; and Matt Rubin, Clean Energy Program Analyst

A ZEV standard is a proven method of curbing pollution from the transportation sector, which has become the leading source of greenhouse gas pollution nationwide. Colorado adopted a ZEV standard in 2019, Nevada has begun the administrative process to put one in place, and New Mexico plans to do the same by 2022. Western Resource Advocates is providing important recommendations in those processes, including on the credit system for auto manufacturers.

HOW THE ZEV CREDITING SYSTEM WORKS

The ZEV standard is a policy set by the California Air Resources Board which can be adopted by any state in the country. The standard requires auto manufacturers doing business in a ZEV state to provide a certain number of zero-emitting cars and trucks each year to dealerships in the state. Manufacturers are awarded credits for each zero-emission vehicle brought to the state for sale, based on features like how far the vehicle can go on a single charge and whether the vehicle is a plug-in hybrid or fully electric. Those credits are then retired in a given year to demonstrate compliance with the standard. The standard increases annually, and manufacturers in participating states are required to bring more electric vehicles into a ZEV state each year or retire credits in that year to satisfy the standard. If a manufacturer does not sell enough ZEVs to meet the standard in a given year, the manufacturer can purchase credits from other manufacturers that had a surplus.

Reposted with permission. Read the full blog post on Western Resource Advocates

Take a moment to sign the clean car standards petition today. Tell Nevada Division of Environmental Protection that you support bringing more clean and electric vehicles for sale in Nevada!